Spectrum Brands Holdings, Inc. (NYSE:SPB) reported third-quarter fiscal 2025 results on Thursday that fell short of analyst expectations, as the company faced tariff-related disruptions and weakening consumer demand.
Adjusted earnings per share came in at $1.24, below the analyst forecast of $1.35, while revenue declined 10.2% year-over-year to $699.6 million, missing the consensus estimate of $745.55 million.
The revenue decline was largely driven by halted shipments during pricing negotiations with retailers, supply constraints caused by tariffs, and soft demand in the Global Pet Care and Home and Personal Care segments. Additionally, adverse weather delayed replenishment orders in the Home and Garden division. Excluding a $6.8 million positive impact from foreign exchange, organic net sales fell 11.1%.
Despite the setbacks, Spectrum Brands’ shares rose 1.7% after the announcement, as investors focused on the company’s progress addressing tariff challenges and its reaffirmed free cash flow guidance.
“Our results this quarter reflect Spectrum Brands making the right but difficult long-term decisions for the Company,” said David Maura, Chairman and CEO. “When the tariff rate on Chinese imports to the US went to 145% early in the third quarter, we paused virtually all purchases from China and accelerated our plans to further diversify our supply base.”
Net income from continuing operations increased 7.3% to $20.5 million, while adjusted EBITDA declined 27.9% to $76.6 million compared to the prior year. The gross profit margin contracted by 110 basis points, landing at 37.8%.
The company maintained its forecast to generate about $160 million in free cash flow for fiscal 2025 but continues to suspend its earnings framework due to ongoing uncertainties in global trade and tariffs.
During the quarter, Spectrum repurchased 0.9 million shares for $54.4 million. Since completing its divestiture of HHI, the company has bought back 17.1 million shares totaling $1.3 billion, resulting in 24.2 million shares outstanding as of the report date.
Spectrum Brands Holdings stock price
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